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Since long time ago,
if we wanted to buy stocks for long-term investment on the Indonesia Stock
Exchange, there were only two sectors to choose from: Consumer goods and
banking. However, for those of you who are sharia account holders, you cannot
buy banking stocks, so the choice is limited to consumers. Other options are
Islamic banking stocks, but the earnings power of Islamic banks is generally
not as good as conventional bank’s. Luckily, for BTPN Syariah (BTPS), based on
its performance as of third quarter of 2018 which is fairly good, we may
consider the stock for investment. Okay, here we go.

The stock of PT
Surya Toto Indonesia, Tbk (TOTO) is probably not popular in the stock market because
of its illiquidity, but the corporate name is very well-known as a producer of
sanitary wares such as toilets, bathtubs, sinks, and the like, while the brand of
'Toto' itself is already a quality assurement for toilet wares. Companies with
strong power of brands such as TOTO are usually ideal for long-term
investments. So when the stock instead fell continuously from 700s until 300s in
the last three years, I wonder what's wrong?

Some time ago I
heard a picturesque story. On 15 October 2017, in Bantul city, Yogyakarta, there
was a wedding with unusual dowry, which is not gold or alike, but stocks, ie 50,000
shares of Sido Muncul (SIDO) at a price of Rp555 per share (so the total is
Rp27,700,000, or about US$ 1,910). This is interesting, because the groom was a
stock market investor that started to know stocks since 2013, so he really meant
it when he delivered the stocks as the dowry. The question is why SIDO
that is choosen as the dowry, and not the other stocks?

The name of Bumi Citra Permai (BCIP) most probably
doesn’t ring a bell, but the company just released its first half financial statements,
which at a glance shows impressive results. The net profit increased more than
twice, the annualized ROE 25.5%, and the PBV was just 0.5 times at the price of
Rp125 per share. Is it a jackpot opportunity?

Until Tuesday, 12
September 2017, foreign or international investors kept selling their stocks in
Indonesia stock market so much, that their net buys position from the beginning
of the year, which almost reached Rp20 trillion in the last April, today it has
been minus aka turned net sells, precisely at minus Rp7 trillion. I also received
many questions, why foreign investors keep selling? However, the most important
thing here is not the reason why they’re getting out, but what are the effects
of these conditions to the market. And what is the best investment strategy to
counter these issues?

In last
week article about Warren Buffett, I expressed at least three reasons why
I, personally, make him as a role model. They are: 1. I don’t have enough time
to read more about any other great investors, 2. Not only teaching about stock
investing, Buffett also teaches how to be ‘a good man’, for example he does not
take advantage from the loss of others. 3. Buffett is one of few investors who
is always happy and relaxed in doing his job at Berkshire, and that makes him a
pleasant person.

Just a few days past
in May, but the game difficulty has already switched from ‘easy’ to ‘hard’.
Yup, currently there are many stocks, especially in the second liner group,
which dropped significantly despite the Jakarta Composite Index (JCI) are not
moving anywhere. But some stocks, let’s say Indika Energy (INDY), it goes up, and in this case the hike can be
explained fundamentally, and that’s why we will discuss INDY here. Okay, here we go.

If you used to read
company’s financial statement, you will know that the Indonesian standard
format of financial statement comes as: 1. Statement of Financial Position
(Asset, Liabilities, and Equities). 2. Statement of Profit and Loss (Revenue,
till Net Income). 3. Statement of Changes in Equities and lastly. 4. Statement
of Cash flows. Normally, if writer do a quick financial statement analysis, we
only look at asset changes to company’s net income, and seldom look to
Statement of Cash Flows, then the question comes. What is the difference between
Statement of Cash Flows and Statement of Profit and Loss? What if the company
made profits in Statement of Profit and Loss, but the cash received (stated in the
Statement of Cash flows) is smaller? Then, What if the company stated negative cash flows?
And so on.

Ristia Bintang
Mahkotasejati (RBMS) is one of many property developers specializing in
residential building that listed on IDX, whose shares in recent years are
dormant after the company posted disappointing performances, in line with the
sluggishness of property industry itself. But in last 2017, RBMS acquired two
subsidiaries that operates in hotel industry and modest housing development,
and in 2018 the result begins to show up where RBMS at Quarter 1 posted
revenues of Rp24.5 billion, soaring over the same period in 2017 which is only
Rp551 million, and so is the share begin to appreciate, but on the other hand,
the valuation, at a glance, is still very cheap with PBV only 0.3 times. Future
prospects?

One of the most
memorable experiences of my early years in the Indonesian stock market was when
I watched how property stocks, which previously devastated by the global crisis
in 2008, gained so much in the next few years, and the rise is in line with the
excellent financial performance of property developers at the time, where they
had great return on equity on the level 20 – 30%, thanks to the high rate of
economic growth in Indonesia (had reached 6.9% in 2011) that boosted the prices
of property as many capital owners invest their funds in the property. At those
years, a property developer could purchase land at a bargain price, develop it
into an elite residential area, and later sell it at exorbitant prices. The
areas on the outskirts of Jakarta such as Serpong, Cikarang, Cibubur, developed
rapidly during this period.